The Nigerian National Petroleum Corporation (NNPC), as part of measures to improve transparency and accountability in its operations, has published its audited financial statements online for 2018.
This is viewed as a reaction to the criticism that has been on the government-owned oil firm, for years of conducting the country’s oil business in secret by only publishing unaudited financial reports. The audited financial statements for NNPC and its subsidiaries, which were published on the company’s website yesterday, were signed by the Group Managing director/Chief Executive Officer of NNPC and the Chief Executives of the various subsidiaries.
The NNPC also published the audited accounts of its 20 subsidiaries and business divisions for the first time.
While acknowledging the release of the audited financial statement, the Executive Secretary Nigeria Extractive Industry Transparency Initiative (NEITI), Waziri Adio said, “Having such disclosures is good for transparency and accountability. I congratulate Mele Kyari and his team and urge them to make this a regular practice and in open data format.”
?Link to the 2018 audited financial statements of @NNPCgroup. Having such disclosures is good for transparency and accountability. I congratulate @MKKyari and his team and urge them to make this a regular practice and in open data format. @nigeriaeiti https://t.co/0k9MHCRFjK
— Waziri Adio (@Waziriadio) June 14, 2020
The audited financial statements focused more on the subsidiaries of the NNPC group as there was no consolidated financial statement.
As part of the highlights of the audited financial statement, the National Petroleum Investment Management Services (NAPIMS), its most profitable subsidiary according to the statements, reported a revenue of N5.04 trillion in 2018 and a profit of N1.01 trillion as against a loss of N1.65 trillion that was recorded in 2017.
The nation’s 3 refineries recorded combined losses of N154 billion with the Kaduna Refinery recording zero revenue for 2018. The Nigerian Petroleum Development Company (NPDC), its oil production subsidiary made an after-tax profit of N179 billion for 2018 as against the N157 billion that was made in 2017.
The Pipeline Product Marketing Company (PPMC), its supply and refined petroleum products marketing subsidiary, reported a revenue of N29.5 billion in 2018 as against the N113 billion that was achieved in 2017. It reported a profit after tax of N9.3 billion in 2018 as against a loss of N27 billion that was recorded in 2017.